TALLAHASSEE, Fla., Jan. 28 (UPI) -- State Farm Florida Insurance said it would submit a two-year plan to allow it to back out of the property insurance business in Florida.
State law requires insurers to submit a plan for withdrawal to the Office of Insurance Regulation within 90 days and give its active customers 180-day notices for policies it will not renew, Insurance Journal reported Wednesday.
The company, the largest property insurance company in the state, said it was pulling back from the business due to its "substantially weakened financial position," the company said.
"Faced with steeply declining resources to cover future claims and expenses, State Farm Florida has little choice," company President Jim Thompson said in a statement.
"This is not an action we wanted to take, but one we must take given the realities of the Florida property insurance market," he said.
Insurance Commissioner Kevin McCarty said he would closely review the withdrawal plan.
The regulator and the company have sparred in the past over rate increases and information requests, Insurance Journal reported.
